(CNN) -- The NBA began a lockout of its players early Friday, a statement from the league said.

The lockout will continue until a new collective bargaining agreement is reached with the National Basketball Players Association.

"The expiring collective bargaining agreement created a broken system that produced huge financial losses for our teams," said Adam Silver, the NBA deputy commissioner.

"We need a sustainable business model that allows all 30 teams to be able to compete for a championship, fairly compensates our players and provides teams, if well-managed, with an opportunity to be profitable."

The season was not profitable for most of the league's 30 owners and they need some cost-cutting help from players, NBA Commissioner David Stern told reporters.

The league lost as much as $300 million in the 2010-11 season, Stern said, according to the NBA's website.

Owners could not agree to the players union call for an average $7 million player salary in the sixth year of a new labor deal, Deputy Commissioner Adam Silver said.

The current salary average is about $5 million.

"While today's decision by the owners to lock out the players is unfortunate, our players will continue to stay focused on a fair outcome," said Derek Fisher, president of the NBA Players Association. "We will continue to negotiate and work toward a resolution that will bring the fans the game they love so much."